Energy Policies of IEA Countries: Norway 2011

The IEA's 2011 comprehensive review of Norways energy policies and programmes. The review finds that Norway has a unique twin role as a major oil and gas producer and a strong global advocate of climate change mitigation. As the third-largest exporter of energy in the world, it contributes to global energy security by providing reliable supplies to consuming countries.





At the same time, the Norwegians highly value environmental sustainability and the country is taking climate policy very seriously. Norway also manages its petroleum resources and revenue in a commendable way, setting a model for other countries. The challenge now for the government is to stimulate further increases in natural gas and petroleum production from safe and environmentally sustainable operations.

Norway’s large potential for hydropower generation is an asset, as European electricity markets are integrating and variable renewable energy generation is set to increase. More cross-border interconnections are needed to realise the full potential of hydropower for balancing variations in demand and supply in the regional market. Increased interconnections would also improve electricity security in Norway in times of low hydropower availability. Gas-fired power plants should also be considered for use for the same purpose.

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS
Executive summary
Key recommendations
PART I POLICY ANALYSIS
2. GENERAL ENERGY POLICY
Country overview
Supply and demand
Institutions
Key policies
Critique
Recommendations
3. CLIMATE CHANGE
Overview
CO2 emissions from fuel combustion
Institutions
Policies and measures
Critique
Recommendations
4. ENERGY EFFICIENCY
Overview
Institutions
Policies and measures
Critique
Recommendations
PART II SECTOR ANALYSIS
5. FOSSIL FUELS
Petroleum sector
Oil
Natural gas
Coal
Critique
Recommendations
6. CARBON CAPTURE AND STORAGE
Overview
Policy framework, funding and international engagement
Key projects
Research, development and demonstration
Critique
Recommendations
7. RENEWABLE ENERGY
Supply and demand
Institutions
Policies and measures
Critique
Recommendations
8. ELECTRICITY
Supply and demand
Legal framework and market design
Industry structure
Network infrastructure and operation
Prices
Security of supply
Critique
Recommendations
PART III ENERGY TECHNOLOGY
9. ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION
Overview
Strategies
Programmes and supporting bodies
Funding
International collaboration
Critique
Recommendations
PART IV ANNEXES
ANNEX A: Organisation of the review
ANNEX B: Energy balances and key statistical data
ANNEX C: International Energy Agency “Shared Goals”
ANNEX D: Glossary and list of abbreviations